KG Mobility (KGM) is set to expand its presence in the African market by entering the knockdown (KD) assembly business in Ethiopia.
KGM announced that it signed a memorandum of understanding (MOU) with B&C and Youngsan Glonet at KG Tower in Jung-gu, Seoul, on September 22.
The agreement establishes a close cooperation framework for the construction of a KD plant in Ethiopia, where KGM vehicles will be assembled and produced, as well as for local sales.
B&C is a company engaged in various businesses in Ethiopia, including construction and aluminum manufacturing. It will secure the site and infrastructure for the local production facility.
Youngsan Glonet will provide comprehensive support for the plant's construction, including KD plant design, technical consulting, engineering support, and production equipment supply.
Construction of the KD assembly plant is set to begin in October, with production expected to start in the first half of next year. KGM plans to supply around 1,000 units annually of its eco-friendly vehicle lineup, including the Torres EVX and Musso EV.
As a result, B&C aims to export KGM vehicles produced at the plant not only to the domestic market but also to key East African countries such as Somalia, Kenya, Uganda, Rwanda, and Djibouti, establishing Ethiopia as a central hub in East Africa.
KGM CEO Hwang Gi-young stated, "We will expand our KD business in Saudi Arabia and Vietnam within the year, increasing sales volume through market entry in emerging markets and the launch of new models in each country."
Meanwhile, KGM officially launched its brand in the Myanmar market last month, showcasing its electric vehicle lineup and further expanding its reach into emerging markets.
* This article has been translated by AI.
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